View of Dampier to Bunbury Natural Gas Pipeline at Main Line Valve station #7, near Dampier, Western Australia. The 660mm diameter pipeline is the large yellow pipe in the foreground.

Today Australia is the fourth largest exporter of liquified natural gas (LNG), but shale resources estimated at about 400 trillion cubic feet could propel it to a global exporter, overtaking Qatar. Australia has enough gas reserves to power the country for the next 184 years at the current rate of production, a government report said on Monday.

The study conducted by Geoscience Australia found that the country’s gas reserves ranked third behind its coal and uranium production. Its assessment also concluded major shale gas resources in Central Australia. These findings reasserts Australia’s position as a major gas exporter over the coming years, considering the increasing worldwide demand for gas in the future.

Resources Minister Martin Ferguson said that shale gas exploration is in its early stages and not completely understood. However, shale gas has the potential to double up Australia’s gas reserves.

The Australian government also announced 27 new offshore petroleum acreages across nine basins and according to Mr Ferguson 40 more sedimentary basins are yet to be fully explored.

Gas exports are expected to grow by a further 19 percent in 2012 as production from Pluto LNG project goes online. By 2017, this number is expected to quadruple which would make Australia the world’s biggest gas exporter.

In spite of current economic uncertainty, Australia expects increased demands from Japan in wake of the Fukushima disaster. Japan accounts for 70 percent of Australian LNG exports. Furthermore, India’s demand for LNG is also expected to triple by 2015 while China’s demand grew by a third last year.

Image Credit: Creative Commons/Glen Dillon

DHS spokesman, Peter Boogaard said: “DHS’s Industrial Control Systems Cyber Emergency Response Team has been working since March 2012 with critical infrastructure owners and operators in the oil and natural gas sector to address a series of cyber intrusions targeting natural gas pipeline companies.”

The cyber intrusion is related to sophisticated spear-phishing activities that target personnel within the private companies. To minimise such a crime, DHS has joined hands with the FBI and other federal agencies. The ICS-CERT is coordinating with renowned organisations that can prepare mitigation plans customised to their current network and security configurations to detect, mitigate and prevent such threats.

To wipe up cyber intrusion, the agency is privately meeting with companies as well trying to uproot the reason behind it. Late last week, it also issued the first public advisory, which was released by the Christian Science Monitor. Despite anticipatory majors, it is unclear ‘who is behind the attacks?’ The agency is trying to figure out reasons for pilfering of data or other negative consequences.

Jesse Hurley, chairman of the critical infrastructure committee at the North American Energy Standards Board and CEO of Shift Systems, said: “Most natural gas pipeline infrastructure in the U.S. is experiencing this type of attack.”

Because of increasing incidence, the Department of Homeland Security is requesting the entire industry to act as an intelligence source. It has asked the companies to leave the malware intact so that the agency can understand what it does to the network.

Image Credit: Creative Commons/Glen Dillon

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A US energy firm states that the Commission for Energy Regulation has put at risk, cheaper energy, job opportunities as well as the diversity and security of gas supply.

€1 billion investment of the Shannon estuary is at risk by the commission’s policies, stated Paddy Power, the chief executive officer of the US-owned Shannon LNG.

Shannon LNG secured approval for a €600 million liquefied gas terminal early in 2008. It also has plans for a plant at Co Kerry that will feature combined heat power.

If this project takes flight it would create 650 job opportunities in the 4 year construction phase. After it’s completion 50 permanent jobs would be created.

However, the Regulation Commission has proposed that all gas suppliers along with Shannon LNG, pay for the state’s two inter connectors. These inter connectors supply around 95% of the State’s gas. This proposal has left the whole plan of Shannon LNG in a lurch.

Mr Power stated that the new regulation would cost Shannon LNG around €85 million per annum, which is something that Shannon LNG is not comfortable with.

PG&E is all set to replace a natural gas line laid along highway 99 between Yuba City and Live Oak dating back to the days of the Eisenhower administration.

On 23rd April 2012, a company spokesman said that the 3,000 feet line, which is being replaced shouldn’t be thought of as prone to imminent failure and pending disaster.

A spokeswoman for the utility company, Brittany MacKannay said: “Over the past year, we’ve been working on our gas distribution and transmission system, and this is part of that.” as well also remarked: “We want to keep the line at the right pressure to meet demand now and in the future.”

According to the statements by McKannay, work on gas line running north-south about 50 yards west of Highway 99 starting from the southern and ending near Encinal Road has begun about a month ago. The project expected to finish in two months, will be delayed because of rainy weather.

Crews are busy in replacing a gas line having a 16-inch transmission installed in 1954. Being an old line, it runs through an orchard passing along the highway and Union Pacific Rail road tracks.

McKannay said that the replacement project is not directly linked to the case where a line of the same age ruptured in a San Bruno residential neighbourhood killing eight people and destroying dozens of homes in 2010.

She pointed out: “If there’s any one situation that poses a public safety risk, we address it immediately.”

A watchdog group covering PG&E as well other utility companies don’t know the exact reason for replacing the line, which prompted PG&E.

Minda Spatt, communications director for the Utility Reform Network, said: “Obviously, there’s a huge interest in customer safety among the public, and we hope there’s a huge interest by PG&E.” as well said: “Is this something they’ve known about for a long time, or discovered recently?”

In her statement Spatt said that her group is more concerned about PG&E, which is trying to replace old lines for safety precautions without taking straight support by ratepayers. Hence, it is affecting company profits.

PG&E has filed requests with the state Public Utilities Commission to increase its rates to pay for pipeline upgrades.

Creative Commons/Gonzalo Bauluz

The Lockwood Landfill in Nevada will help produce 3.2 megawatts of electricity using landfill gas. This will be Nevada’s first and only Gas to Energy power plant. The project will use landfill gas, produced on-site to generate electricity. The energy generated from this power plant will be able to power around 1,800 homes.

Gas is created when organic materials such as food and yard waste decompose. Methane comprises of 55% of this gas. Collection pipes are placed all over to site to collect this gas which is then directed to the power plant. Here, it will be used as fuel to run two generators. It will also aid in reducing the use of coal, required to run about 700 rail cars.

Landfill gas has several advantages over fossil fuels or even wind and solar energy. The key advantage is that it is endorsed by the Environmental Protection Agency(EPA). Also it works independent of environmental factors which is not the case for wind and solar energy. It can relied on even in peak hours. It performs as an economical alternative to other fuel sources such as natural gas.

Waste Management either owns or operates around 131 landfill Gas to Energy projects throughout North America. In all, it produces enough energy to power around 475,000 homes. When combined with its other energy projects, in all it produces over 9 million megawatts of energy per year. This is enough to power more than 1.1 million homes.

The Lockwood Landfill project ensures that even garbage will be utilised. Waste Management by investing in this project is using garbage that will be left on the curb to provide power to homes.

Waste Management is a leader in the landfill gas to energy projects and has been in  operation for almost two decades. It is responsible for more gas to energy projects than any other company in North America. The company prides itself on using technology that derives the maximum benefit from the waste stream.

Waste Management provides waste and recycling services to around 131,000 customers in northern Nevada. Its subsidiaries handle collection, recycling,disposal service, transfer and resource recovery. The company caters to residential, commercial, mucicipal and industrial customers in Northern Nevada.

Hertz is announcing the introduction of rental CNG cars beginning early next month, at the Rogers World Airport in Oklahoma City. The fleet of cars will include eight CNG Honda Civics and two CNG GMC Yukons fitted with NeverLost GPS units to help car drivers map their way around local CNG refueling stations.

Mark P. Frissora, Hertz Chairman and Chief Executive Officer said that Hertz will continue with its dedication towards providing a range of CNG, electric and fuel efficient vehicles from the Green Traveler Collection, to suit rental needs of their customers. The fleet will be expanded in the coming time as more clean emission vehicles will be offered to sustain low emission travel options.

The fleet of cars will be on display on Wednesday, April 11 in concurrence with the Oklahoma City Thunder’s Green Week, an NBA initiatory for environmental awareness. Furthermore, Hertz will also be offering 10 weekend CNG vehicle rentals to game attendees.

Along with Hertz’s Oklahoma City CNG airport rentals program, the company is also serving CNG airport buses to the Los Angeles Airport, CNG vehicles through Hertz On Demand at Oklahoma State University and CNG vehicles to Italy and United Kingdom as a part of its sustainability driven programme.

As Aubrey K. McClendon, Chesapeake Chief Executive Officer says it, Hertz’s natural gas vehicles rental program paves a new path for natural gas as a transportation fuel. Hiring a Hertz car will not only cut the customer’s fueling costs but also help him contribute towards a better environment.

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Travel analysts predict that gas prices will soar to $4 this month. Eleven states already have an average of $4 gallon and four more states are likely to join them. There has been no significant change in the factors affecting petrol and gas prices. The imposed sanctions on Iran will continue to deter it from developing nuclear weapons. As long as the pressure on Iran continues, gas prices will continue to rise.

The national average gas price is expected to rise to $4.05 by mid-April. At this point it may level off, or start to fall. The average price could even go as high as $4.25 per gallon in late April.

Gasoline prices generally rise in spring as refineries switch to expensive summer blends that include additives to reduce pollution. The pump prices have also increased this year due to high crude oil prices, that refineries have to purchase to make gasoline. The average price of gas has soared by 15% since 1st January 2012.

The concern that global oil supply could be tight due to the conflict over the nuclear program in Iran has led oil prices to rise.

US along with other countries is fearful that Iran, the world’s third largest oil exporter, is using the nuclear facilities to build a nuclear weapon. Iran has denied the charge but refuses international inspectors to take a look at the facilities.

US plans to move ahead with it imposed sanctions on Iran to curb its oil exports. It is held that there are other alternative and enough oil markets in the world for US allies, to ahead with this plan without worrying.

The goal is to cut Iran’s Central bank which processes almost all of Iran’s oil business. In this regard, the US sanctions will be imposed on foreign banks that continue to import oil from Iran, from June. Other nations are trying to cut down on Iranian oil revenue through various sanctions and an embargo.

France, US and other countries are considering releasing emergency oil supply into the market to soothe prices. Analysts however, state that releasing oil from national inventories and the U.S. Strategic Petroleum Reserve will only be a temporary measure.

Because of Memorial Day weekend, also known as the traditional kick-off of the summer diving season, the price on gas is rising in weeks.

The national average in May 2011 climbed to an average price of $3.90 per gallon. It couldn’t break the record in July 2008 of $4.11, in spite of increasing prices.

Rising gasoline price has resulted in the rising prices on crude oil. Benchmark of U.S. crude has increased by 8 percent. The price of a barrel dropped 20 cents to $106.67 in New York while Brent crude climbed 19 cents to $ 125.32 per barrel in London.

Heating oil added 0.82 cent to $3.2183 per gallon and gasoline futures improved by 1.99 cents to $3.4051 per gallon.

As a result of the western nations’ oppose over Iran nuclear program, the price on oil is ascending. Western nations claim that Iran is building a nuclear weapon. To force Iran for the negotiation, the western leaders are trying to cut off Iran’s oil revenues by an array of sanctions.

For a fresh round of talks over Iran’s nuclear program, representatives from the U.S. and five other nations are to meet with Iran officials in April 2012.

Natural gas prices to break 10-year’s record of decreasing prices. The futures contract fell 2.5 cents to $2.25 per 1,000 cubic feet in midday trading. It dropped as low as $2.224 per 1,000 cubic feet.

The prices on natural gas have dropped surprisingly because of unseasonable warm temperatures and pressure on increasing production.

Image Credit: Creative Commons/the United States Department of Energy

Creative Commons/ Evelyn Simak

PG&E proposed a gas safety plan of $5 billion to CPUC. The plan aims to enhance safety of the company gas lines. The plan is designed so that the major cost of the plan will be borne by its customers. However, as of now the utility has not specified the exact amount that would be paid by ratepayers.

Following the destructive explosion of the San Bruno pipeline  in 2010, the commission now makes it mandatory for the utilities to pressure test and replace untested parts of the gas transmission lines.

The commission will reevaluate the proposals put forth by PD&E and other utilities prior to approving costs or setting new safety standards.

PG&E declared last week that it would hand out $70 million as compensation for the damaging San Francisco suburb blast that occurred on 9th September 2011.

The booming natural gas production, sinking gas prices and Obama administration’s proposed tax credit should reflect a consumer’s increased liking for natural gas vehicles, which sadly isn’t the situation. However, manufacturers have geared up to introduce more NGVs in the U.S. market this year.

Starting July, Chrysler and General Motors Co. will introduce heavy duty pick ups that run on both compressed natural gas as well as gasoline for up to 650 miles. Natural gas as a form of fuel, enjoys a lot of benefits since it comes from domestic sources, lets out only 30% of the greenhouse emissions and costs much less than gasoline. This year, natural gas prices have dropped by nearly 18 percent while gasoline prices are up by 13 percent.

But, NGV manufacturers are supplying vehicles mostly to fleet customers such as local governments, utilities and construction companies. Only one tenth of 1% of the vehicles running are brought by individual U.S. buyers.

U.S. buyers are very slow to adapt to NGV for lack of infrastructure such as fueling stations which are only 1,000 throughout the country. Most of them are not open to public and are operated by government organizations as central refueling stations for fleets.

The only natural gas car sold throughout the United States is the Honda Civic. Honda plans to double the dealers selling natural gas Civics and build nearly 4,000 NGV Civics in 2012, but still the gasoline powered version is more popular among buyers.

Natural gas vehicles are expensive due to additional fuel tanks and spare parts. The price of converting a gasoline car into natural gas powered one can go up to $18,000.

The popularity of natural gas vehicles and hybrid cars is expected to rise only if its price goes down significantly compared to its gasoline version. The Obama administration is pushing ahead an increase in tax credit from the present $7,500 electric vehicle tax credit to an advanced technology vehicle credit of up to $10,000. This could encourage lower prices and demand.